Unibet Group Plc Interim Report January – June 2016 (Unaudited)
Total Page:16
File Type:pdf, Size:1020Kb
Unibet Group plc Interim report January – June 2016 (unaudited) Second quarter and first half year highlights New all-time high in Gross winnings revenue of GBP 126.6 (80.5) million for the second quarter of 2016, and GBP 249.0 (156.6) million for the first half of 2016. Gross winnings revenue from the acquisitions of iGame Group and Stan James Online amounted to GBP 14.7 million for the second quarter of 2016. Underlying EBITDA for the second quarter of 2016 was GBP 22.0 (19.0) million, and GBP 50.5 (34.1) million for the first half of 2016. EBITDA from the acquisitions iGame Group and Stan James Online amounted to GBP 4.6 million for the second quarter of 2016. Profit before tax for the second quarter of 2016 amounted to GBP 15.4 (15.2) million. Profit before tax for the first half of 2016 amounted to GBP 37.9 (26.5) million. Profit after tax for the second quarter of 2016 amounted to GBP 13.5 (13.4) million. Profit after tax for the first half of 2016 amounted to GBP 33.5 (23.4) million. Earnings per share for the second quarter of 2016 were GBP 0.059 (0.059) and GBP 0.146 (0.103) for the first half of 2016. Free cash flow for the second quarter of 2016 amounted to GBP 21.4 (11.3) million. Free cash flow for the first half of 2016 amounted to GBP 47.0 (25.0). Number of active customers at the end of the quarter was 1,132,840 (603,528). Of these 216,515 are customers of iGame Group and Stan James Online. “Investments drive sustained market-share gains with 57 per cent increase in Gross winnings revenue (47 per cent in constant currency)“ "The quarter was characterised by the Euro 2016 which provided a new all-time high in customer activity and continued strong growth. Margins in the tournament were significantly higher in July than in June. If the margins had been consistent across the tournament, then Gross winnings revenue for the second quarter would have been around GBP 3 million higher.” “Gross winnings revenue in the Nordic region grew by 48 per cent (21 per cent organic in constant currency), while Western Europe grew by over 71 per cent (37 per cent organic in constant currency). Of the Gross winnings revenue 35 per cent was from locally regulated markets.” “Gross winnings revenues from the mobile channel more than doubled in GBP (74 per cent organic growth in constant currency) and accounted for 63 per cent of the total Gross winnings revenue in the second quarter.” “As in previous tournament years, we invested heavily in marketing both for new customer acquisition and reactivation of existing customers. While this has a short term effect in reducing profits, we are confident that this as proven previously will drive sustained growth in Gross winnings revenue and profits. For the quarter, marketing was 30 per cent of Gross winnings revenue, but for the full year we still expect it to average a few percentage points below 30 per cent.” “In the period from 1 to 24 July 2016, average daily Gross winnings revenue in GBP has more than doubled compared to the same period in 2015. Adjusting for the unusually high margin on the final stages of the Euros, the impact of exchange rate changes and acquisitions, the organic constant currency growth is close to 50 per cent,” says Henrik Tjärnström, CEO of Unibet Group. Today, Wednesday 27 July 2016, Unibet Group’s CEO Henrik Tjärnström will host a presentation in English at FinancialHearings, Operaterrassen in Stockholm at 9.00 CEST. Please go to www.financialhearings.com to sign in. The presentation is also webcast live on www.unibetgroupplc.com For those who would like to participate in the telephone conference in connection with the presentation, the telephone number is UK: +44 20 3008 9804 or in the USA: +1 855 831 5946. The Unibet Group companies hold local gambling licences in UK, France, Belgium, Denmark, Germany (Schleswig-Holstein), Italy, Australia, Ireland, Romania and Estonia. The Unibet Group also holds international gambling licences in Malta, Gibraltar and Alderney. The Unibet Group pays betting duties in all markets in accordance with applicable local laws. Unibet Group plc Interim report January – June 2016 (unaudited) 2 SUMMARY TABLE Q2 AND PRIOR YEAR This table and the contents of this announcement are unaudited. To aid comparability, the ‘per share’ figures disclosed below, and throughout this report, relating to Q2 2015 and the period from January to June 2015, have been adjusted to reflect the 8:1 share split in December 2015. GBP Q2 Jan - June Full Year Rolling 2016 2015 2016 2015 2015 12 months³ GBPm GBPm GBPm GBPm GBPm GBPm Gross winnings revenue 126.6 80.5 249.0 156.6 354.1 446.5 EBITDA¹ 21.1 19.0 48.7 33.4 77.0 92.3 Underlying EBITDA 22.0 19.0 50.5 34.1 80.8 97.2 Profit before tax 15.4 15.2 37.9 26.5 62.2 73.6 Profit after tax 13.5 13.4 33.5 23.4 55.7 65.8 Net cash² 28.4 12.5 28.4 12.5 46.0 Bank debt 62.1 - 62.1 - 56.7 GBP GBP GBP GBP GBP GBP EBITDA¹ per share 0.092 0.083 0.212 0.147 0.337 0.403 Earnings per share 0.059 0.059 0.146 0.103 0.244 0.287 Net cash² per share 0.123 0.055 0.123 0.055 0.200 SEK Q2 Jan - June Full Year Rolling 2016 2015 2016 2015 2015 12 months³ SEKm SEKm SEKm SEKm SEKm SEKm Gross winnings revenue 1,493.5 1,037.6 2,976.8 1,997.3 4,562.9 5,542.5 EBITDA¹ 248.9 244.9 582.2 426.0 992.2 1,148.4 Underlying EBITDA 259.5 244.9 603.7 434.9 1,041.2 1,210.0 Profit before tax 181.7 195.9 453.1 338.0 801.5 916.6 Profit after tax 159.3 172.7 400.5 298.4 717.8 819.8 Net cash² 323.8 161.9 323.8 161.9 576.0 Bank debt 708.1 - 708.1 - 709.9 SEK SEK SEK SEK SEK SEK EBITDA¹ per share 1.084 1.076 2.535 1.871 4.347 5.012 Earnings per share 0.693 0.759 1.744 1.311 3.145 3.578 Net cash² per share 1.407 0.709 1.407 0.709 2.503 No. No. No. No. No. No. Active customers 1,132,840 603,528 Registered customers (million) 15.3 10.3 15.3 10.3 13.5 Currency rate Q2 16 average: 1GBP = 11.797 SEK, Q2 15 average: 1GBP = 12.890 SEK, FY 15 average: 1GBP = 12.886 SEK, 2016 YTD average: 1GBP = 11.955 SEK, 2015 YTD average: 1GBP = 12.754 SEK, 30 June 2016: 1GBP = 11.403 SEK, 30 June 2015: 1 GBP = 12.953 SEK, 31 December 2015: 1GBP = 12.521 SEK The Unibet Group reports in GBP and the SEK figures presented above at period end rates are for information only and are not intended to comply with IFRS. 1 EBITDA = Profit from operations before depreciation & amortisation. 2 Net cash = Total cash at period end less customer balances. 3 Rolling 12 months consists of 12 months ended 30 June 2016. Significant events during the second quarter of 2016 On 15 April 2016, the Unibet Group repaid EUR 8 million of the Revolving Credit Facility. On 17 May 2016, the Unibet Group utilised SEK 141 million and EUR 36 million of the Revolving Credit Facility. Significant events after the period end On 18 July 2016, the Unibet Group repaid EUR 4 million of the Revolving Credit Facility. Unibet Group plc “Fawwara Bldgs", Msida Road, Gzira GZR1405, Malta Tel: +356 2133 3532 Fax: +356 2343 1510 Website: www.unibetgroupplc.com Email: [email protected] Registered office: c/o Camilleri Preziosi, Level 2, Valletta Buildings, South Street, Valletta, Malta. Company No: C 39017. Registered in Malta. Unibet Group plc Interim report January – June 2016 (unaudited) 3 Regulation of online gaming in the Netherlands After a plenary debate, held in two parts on 23 and 30 June, the House of Representatives of the Dutch parliament voted in favour of adopting the new Online Gaming Bill in the Netherlands. As expected, the House of Representatives adopted the amendment to increase the proposed online gaming tax from 20 to 29 per cent, equal to the rate land-based operators pay. The Bill as adopted does leave the option open to evaluate the effect of the tax rate on channelisation. The next step in the process is the publication of secondary legislation for public consultation and for the Bill to go to the Senate this autumn. iGame Group earn-out The iGame Group continued to perform strongly during the second quarter 2016 and the result of the final earn-out period is expected to be around the maximum level. This is subject to final review in accordance with the purchase agreement and payment is due by 30 September 2016. Market The Unibet Group is one of Europe’s leading providers of moneytainment, operating in 20 different languages in more than 100 countries. The Unibet Group offers pre-game and live Sports betting, Racing, Poker, Casino & Games and Bingo through several subsidiaries and brands. While the Group’s core markets are in Europe and Australia, it addresses global markets excluding only territories that the Group has consistently blocked for legal reasons such as the USA, Turkey and similar markets.